UBS Group announced it will pay $300 million to resolve obligations related to a Credit Suisse deal with the U.S. Department of Justice over the sales of residential mortgage-backed securities. UBS inherited these obligations when it acquired Credit Suisse in 2023. The payment addresses consumer-relief commitments from a 2017 agreement where Credit Suisse paid $5.3 billion for misleading investors before the 2008 financial crisis. UBS plans to wind down Credit Suisse legal matters quickly, potentially incurring an additional $500 million in costs for legacy cases.
UBS Group will pay $300 million to settle obligations related to Credit Suisse's residential mortgage-backed securities (RMBS) deal with the U.S. DOJ. UBS inherited these obligations during its 2023 acquisition of Credit Suisse.
The settlement resolves consumer-relief commitments from 2017 when Credit Suisse agreed to pay $5.3 billion to settle DOJ claims regarding misleading investors about RMBS ahead of the 2008 financial crisis.
This new agreement with the DOJ is part of UBS's strategy to wind down Credit Suisse's legal matters promptly, which may include paying an estimated additional cost of $500 million for legacy cases.
Following its own RMBS settlement with the DOJ for $1.4 billion in August 2023, UBS aims to quickly resolve any remaining legal issues associated with its acquisition of Credit Suisse.
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